Investment Talk

High Propit Investment Talk

20080814

Slow projects lose investment licenses

Investment licenses for delayed projects along the coastline of Dien Ban District will be withdrawn, said Tran Minh Ca, Vice Chairman of the central Quang Nam province's People's Committee.

More than 30 tourism and real estate projects have been granted land usage in the district, with a total area of about 270 ha. However, 20 projects haven't been implemented as planned, according to statistics from the local Steering Committee on investment projects.

According to Ca, who is also the head of this Steering Committee, most delayed projects faced financial problems.

Nguyen Tien Dung, the deputy director of a tourism company in Hoi An Town, said his tourism company had difficulties in capital mobilization and bank loans with low interest rates, preventing him from carrying out his development plan.

While hundreds of hectares of idle land wait for unfinished projects, many households living in the area struggle with a lack of land for cultivation. These projects affect roughly 1,700 households, and more than 1,000 households must be resettled for site clearance.

"Eight out of eleven projects in Dien Duong Commune have been delayed without any reason," said Le Van Khue, Vice Chairman of Dien Duong Commune's People's Committee. All of the projects have been granted licenses since 2003 and 2005.

"More than 50 ha of empty land is now useless while many households lead difficult lives due to a lack of land."

The local authorities had also reported on the situation to province offices and asked for land to be revoked to create jobs for households in the area, said Khue.

Delayed projects will soon be inspected and construction that is interrupted due to financial problems will have their land revoked and investors will lose their investment licenses, according to Ca.

Recently, the province's People's Committee has withdrawn licenses from 55 delayed projects in a range of fields and considered withdrawing licenses for 30 more projects.